Several of the biggest Altcoin’s LED corrective movements to the disadvantage on Wednesday, hinting at a break or even ending to the ALTCOIN season before it ever really got started.
The sharp falls pushed Bitcoin dominance back over 60%when the world’s oldest crypto remained relatively stable.
Also remarkable was more than $ 200 million worth of long positions liquidated, of which $ 43 million was in ether (ETH) markets and $ 32 million on XRP (XRP). Although he jumped some of his worst levels of the day, XRP remained lower by 5.2% over the last 24 hours.
Sun and tons were also among those who got hard by the jump and lost 7% and 11% respectively.
These sudden drops are related to a lack of liquidity on the Altcoin trading pair compared to Bitcoin. For example, two percent market depth on Bitcoin is about $ 40 million on each side of the order book on both Binance and Coinbase. For XRP, the total amount is between $ 5 million and $ 6 million on each page, which means a market sale order of $ 6 million would have 2% of sliding without accounting for liquidations.
Dealers will eagerly look at seeing if Altcoins will jump after a series of technical outbreaks last week. If ETH can hold over $ 3,470, it would indicate a potential bullish solution as the prior resistance point will be turned to be supported. A break below this level could decimate the Altcoin market with several expected liquidations.
Open interest for ETH is still at $ 24 billion, significantly higher than during its highest 2021, when it failed to top $ 10 billion, indicating that much of the recent step has been driven by leverage.
The CoinMarketCaps indicator of the ALTCOIN season has also crossed down from 55 out of 100 to 47, showing weakness throughout the ALTCOIN sector despite a recent increase in retirement.
A return to the ALTCOIN season is likely to see whether Bitcoin can form a new record high above $ 124,000 and begin consolidating above, leaving capital to rotate to more speculative altcoin efforts.
